April 29th, 2005 Amsterdam General Assembly Forum Page 1/12

Didier LUXDidier LUX Airbus SVP Quality

IAQG IAQG & &

Airbus Supply Chain ManagementAirbus Supply Chain Management

April 29th, 2005 Amsterdam General Assembly Forum Page 2/12

Competitiveness, Globalisation Competitiveness, Globalisation

Passenger Growth Forecast, low fare, … Passenger Growth Forecast, low fare, …

Context Context

Sustainable profitabilitySustainable profitability

With mandatory achievementsWith mandatory achievements

Delight the end ConsumersDelight the end Consumers

Aiming toAiming to

Committed to Safety & QualityCommitted to Safety & Quality

Market OutlookMarket Outlook

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Trends & Factors shaping Trends & Factors shaping future Development future Development (1/2)(1/2)

ReliabilityBetter systems design, Operational reliability performance

for airlines / passengers, no ATC/ATM induced delays, …

ComfortNew fuselage design, wider cabin, seats, cabin air quality,

more Comprehensive service, …

SafetyImproved man machine interface, improved active and

passive safety features, …

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Trends & Factors shaping Trends & Factors shaping future Development future Development (2/2)(2/2)

Reduced cost of manufacturing / operations, cost of ownership for airlines, …

Affordability

Ensure effective and reliable Human Performance, …Human factors

Capacity, Travel time, Environment…

and

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SET THE STANDARDS

Clearly define the standards to be met in all areas of the business.

Quality PrinciplesQuality Principles

AUDIT & MEASURE

Verify that actual performance is, in facts, meeting the standards set.

IMPROVE

Improve performance continuously, first to meet the standards, then to improve the standards themselves.

BE CUSTOMER MINDED, up-to the PASSENGERSBE CUSTOMER MINDED, up-to the PASSENGERS

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Therefore Airbus

• Supports IAQG initiatives, e.g. • 9100 Series OPS Certification, 9100 Series OPS Certification,

• Special Process Certification (Nadcap / Nucap), Special Process Certification (Nadcap / Nucap), …

and

IAQG Standards & IAQG Standards & Deployment Deployment

Global standards & regulations are essentialfor efficient operations in the

global aviation system and market

• Adopts them internally (Airbus EN9100 certification received)

• Requests their implementation, as the basic mandatory minima

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Set Targets/KPIs

for PPM & OTD,

Measure

Correct, Improve

General Reqts in Development

CCorrective,orrective,

IImprovement,mprovement,

DDevelopment,evelopment,

processprocess

Quality

Standardisation

LLeanean

SSupply upply CChainhain

Value StreamMapping

Lean & JITImplementation

PeoplePeople

OOwnershipwnership

CCommitment ommitment

CCollaborationollaboration

Sourcing eSupplyChain

Operate

Robust

Processes

Meet

Customer

demands at

lower cost

Improve

continuously

Lead the

Change and

develop

furtherValue of

product

& services

Airbus Supply Chain QualityAirbus Supply Chain QualityImprovement ProgrammeImprovement Programme

IAQG Standards

IAQG - OPSPRI Nadcap / Nucap

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Building Quality from Sub-Tier for final Customer satisfactionBuilding Quality from Sub-Tier for final Customer satisfactionContinuous improvement through closed loop performance monitoring

SUB-

TIERS

Set Standards

Improve Measure

Closed

O T D

Rejection

Delivery

& Support

Airlines

Set Standards

Improve MeasureLoop

TIER 2

O T D

Rejection

Set Standards

Improve Measure

Supply

Chain

TIER 1

Supplie

r

O T D

Rejection

For customer

SatisfactionSatisfaction

AchievementsAchievements

Multi-Tier involvement Multi-Tier involvement and Managementand Management

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Risk analysis (9134), QMS Requirements (9100 series), Process control (9103, …) and Certification (OPS) embedded all along the Supply Chain Process• Development Phase:– Supplier Selection / Approval Process– Product Qualification Process

Integration of IAQG in Integration of IAQG in Supply Chain ManagementSupply Chain Management

Strong Supply Chain Management Strong Supply Chain Management Better SourcingBetter Sourcing Gain visibilityGain visibility

Q.S

• Series Production Phase:– Supplier continuous assessment / performance review

and control change management.

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Improving Product & Services Improving Product & Services valuevalue

All Supply chain to focus on :

• Customers needs

• Integrated processes approach

• Share best practices

• Added value

• Measurements

Achieve Performance, Cost & Delay : QualityAchieve Performance, Cost & Delay : Quality

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Working together, closelyWorking together, closely

To delight our CUSTOMER, we expect from our Supply Chain :

• Real PartnershipPartnership & Involvement (Extended enterprise)

• Full commitment

• Ownership

No matter how good we are today,No matter how good we are today,Our goal is to be be even better tomorrowOur goal is to be be even better tomorrow

And never forgetAnd never forget

April 29th, 2005 Amsterdam General Assembly Forum Page 12/12

Thank you !

Questions ?Questions ?